Adam,
to expand on Hot Rod Dads's comment
go with the pertronix kit - it bolts in place of your points under your existing distributor. If someone wants to convert back, they simply buy a set of points and install (although I would not know why they would want to)
If your generator is good, run that until it needs a re-build, then make your decision on rebuild/alternator/alternator-that-looks-like-generator.
I would put modern gaskets and valve seals in the engine though, gasket/seal technology has come a long way since 1961
